Gediminas Jasionis

General Motors Co. Management Remains Unsure on Opel

by Gediminas Jasionis August 24, 2009
GM-Opel-logo.jpgGeneral Motors Co. seems not able to easily give up the Opel brand production - talks held on Friday ended with no results. It turned out an intense day for GM, as officials were considering selling the Opel unit to Canadian Magna International (MGa.TO) or German RHJ International (RHJI.BR). The day has ended without any clear answers, which made people consider the company's future outlook and management's readiness to make swift decisions.

The Germans are looking forward to a meeting with GM's executives this week while Berlin is building the tension, pressing for a quick decision. Klaus Franz, the leader of the Opel factory council, has expressed strict position towards GM's lagging decision on Opel: ''we have kept our calm up to this point, we have listened carefully and commented, but now this stage has come to an end. If nothing changes on the part of General Motors by the end of the week, then we will make a move and bring in extraordinary actions''.

The company announced on Monday the government will not involve in their choice of continued Opel manufacturing in Europe. Government's officials will only work as consultants on the matter and will not get involved in GM's final decision. The matter was settled within government's policy not to involve in the company's day-to-day management decisions.

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